The introduction of Real Time Information (RTI) by HMRC will affect all companies with employees or pensioners.

The PAYE system has been a feature of UK taxation since its introduction nearly 70 years ago in 1944 and it is set to change dramatically in the next few months.

The employer has to calculate the tax and national insurance contributions (NICs) from each employee and pay those deductions to HMRC.

Since April 2000 employers have also been required to collect the income contingent repayments of student loans as notified by HMRC.